Optimism in the Humber economy has been welcomed as a positive outlook was underlined, with freeport and green energy growth at the fore.
Hull and Humber Chamber of Commerce’s Quarter One Survey highlighted a brighter view as a freshly vaccinated population is able to venture out and get the region “back to business”.
Manufacturing has already been strong, with the phenomenal demand seen in the caravan and modular building cluster.
The analysis comes after a tough first quarter for firms.
Results from quarter four were more promising after a difficult third quarter, reflecting a more positive business mood. But as Lockdown Three was announced on January 4, progress made was put on hold.
It saw the nation back behind strict measures and all non essential shops were closed for the duration, only being allowed to reopen gradually as quarter two opened.
Chamber chief executive, Dr Ian Kelly, said: “It is encouraging to see some signs of optimism in the Humber as we emerge from the 海角视频’s third lockdown.
“It has been a tough start to the year for many businesses, but we are looking forward now as the economy begins to reboot for a stronger second quarter.
Most Read
“The vaccination programme in the 海角视频 has been a tremendous success and as we come out of lockdown, the innovative businesses we have here in the Humber will once again drive us forward.
“With lots of inward investment and exciting plans for renewable energy, carbon capture and our newly-bestowed freeport status, the Humber is better placed than most to bounce back strongly and once again prosper.”
Turnover expectations for the coming months were up, rising by 15 points to +23, with profit expectations also showing an increase of 8 points to 10.
The survey also revealed that as businesses grappled with the after-effects of Brexit in the Humber, export sales remained in negative territory, but did do slightly better than in the previous quarter, as did export orders, however both balance figures remained firmly negative.
Home sales and home orders both fell back, with the former dropping 13 points and the latter down a further 18 points, to -13 and -24 respectively.
Employment opportunities were also on the back foot with many businesses in survival mode. Only 10 per cent were looking to increase their staffing levels, but 70 per cent said they were holding steady, with the balance figure improving slightly from the previous quarter to -10.
Prospects for the next three months remain subdued, with only 13 per cent of firms looking to increase their staffing levels.
Don’t miss
Businesses said cashflow in the past three months had dropped, with a 34 point drop to -18, and investment in plant and machinery was also down on the previous quarter, dropping from a balance figure of -12 to -27 this time around.
Training was also hit during the lockdown period with a drop in the balance figure of 24, taking it from +6 to -18. Only 18 per cent of firms said they were working at full capacity this quarter. More firms expected to see their costs rise, with the balance figure rising by 15 points to 38.
Raw material costs, finance and overheads were the biggest pressures on businesses this quarter, while competition, inflation and tax were the biggest external concerns.